Abuja Electricity Distribution Company (AEDC) and its Ikeja counterpart (IKEDC) got the biggest share of the Nigerian Electricity Regulatory Commission (NERC) approved ₦21 billion meters procurement fund for customers.
This was revealed in a meter order signed by its chairman, Sanusi Garba, and Commissioner for Legal, Dafe Akpeneye, on Friday.
It also disclosed that the approved amount which will come from the Meter Acquisition Fund (MAF) would enable the utilities to address the huge metering gap in the Nigerian Electricity Supply Industry (NESI).
“The deployment of funds under the MAF scheme shall accelerate the deployment of meters and a closure of the current metering gap thereby reducing commercial and collection losses to DisCos, enhancing quality of service and improvement of customer satisfaction.
“While the NESI is expected to leverage on the revenue stream under the MAF framework to raise substantial capital funding for metering, there is an imperative to accelerate closure of the metering gap for all customers currently classified under tariff Band A for revenue protection and facilitating demand side management for the affected customers.
“The funds accrued as of the April 2024 market settlement cycle and available for procurement of meters under the first tranche of the MAF scheme is in the sum of N21,864,851,725.00. The Commission hereby approves the use of a sum of N21 billion apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme. ”
NERC ordered: “DisCos shall utilize the first tranche (Tranche A) of disbursement from the MAF scheme based on contributions made by DisCos as at the April 2024 market settlement and attached to this order as Schedule I, to procure and install meters for unmetered Band A customers within their franchise areas.
“DisCos shall, within 14 days from the effective date of this order, conduct a transparent and competitive procurement process, for meter price determination, selection and engagement of MAPs/LMMAs For the metering OF end-use customer meters under the MAF scheme.”
A closer look at the approved funds shows that Ikeja Electric is set to receive the largest share, amounting to ₦4.36 billion. Following this, the Abuja Electricity Distribution Company (Abuja DisCo) will get ₦2.99 billion.
The remaining allocations are as follows: Eko DisCo will get ₦2.92 billion, Ibadan DisCo ₦2.51 billion, Enugu DisCo ₦1.72 billion, Benin DisCo ₦1.57 billion, Kano DisCo ₦1.56 billion, Port Harcourt DisCo ₦1.36 billion, Kaduna Electric ₦1.22 billion, Jos DisCo ₦521.90 million, and Yola DisCo ₦243.35 million.
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